CA Inter P4 · Chapter 8 · Question 1 of 9
Unit (single or output) costing is most suitable for:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) A cement factory producing a single homogeneous product
Explanation
Unit costing is used where production is continuous and units are identical, such as cement, bricks, mining or a brewery, so cost per unit = total cost / units produced. Ship-building and printing orders use job or contract-type costing, and a bus service uses service (operating) costing.
More Unit, Batch and Job Costing MCQs
- Q3For the same part (annual demand 36,000 units, set-up cost ₹1,500 per batch, carrying cost ₹12 per unit per annum), the total annual…
- Q4Batch costing is most commonly used in which of the following industries?
- Q5Job No. 47 requires direct material of ₹18,500 and 120 direct labour hours at ₹150 per hour. Factory overheads are absorbed at ₹90 per…
- Q6In job costing, the cost of spoiled work that is normal and arises because of the exacting specifications of a particular job should be:
- Q7Job costing is the appropriate method of costing where: